Monetary Policy Framework

The Central Bank of Libya during the period from 2002 – 2010 has taken many actions to maintain the integrity of the banking system using monetary policy, in accordance with the provisions of the Banking Law. The decision implemented by the Governor of the Central Bank of Libya, No. (32) for the year2005, sets the establishment of a “monetary policy committee” to develop a general framework for monetary policy to ensure the achievement of its objectives.The committee has the responsibility to evaluate the performance of monetary and banking policies concerning the direct and indirect effects on the economy.Given the importance of the role of monetary policy to maintain stability at the macroeconomic level, utilization of data and information available on the monetary sector is crucial. Recommendations by the committee are sent to the Board of Directors for discussion and implementation if approved.